In the accounts of R Hibiscus, four errors were found from journal postings made during the month. These require correction by general journal. Subsidiary ledgers are used.

ERROR 1 Somehow a tax invoice for the sale of office equipment, at book value, to S Queen $1705 ($1550 + $155 GST)

was entered in the purchases journal as a purchase of inventory from S Queen at the same values.

You are required to correct this error in the accounts of R Hibiscus by preparing:

a pro forma general journals showing:

i what the entry should have been ii what the erroneous entry was iii in general journal format, what the correction journal entry is b reversal and correcting general journals.

ERROR 2 R Hibiscus introduced more assets into the business, including a motor vehicle $7500 and machinery $6300.

The general journal entry was allocated and posted incorrectly because the motor vehicle had been allocated to motor vehicle expense account and machinery to repairs and maintenance and then the total was credited to drawings.

ERROR 3 The tax invoice from Q Rudder for the purchase of inventory for $8327 ($7570 + $757 GST) was erroneously recorded in the purchases journal and allocated to stationery as $832.70 ($757.00 + $75.70 GST). At least the supplier’s name was recorded and processed correctly, as almost nothing else was.

You are required to correct this error in the accounts of R Hibiscus by preparing:

a pro forma general journals showing:

i what the entry should have been ii what the erroneous entry was iii in general journal format, what the correction journal entry is b reversal and correcting general journals.

ERROR 4 Rent received $880 ($800 + $80 GST) has been posted to dividend received in error; the GST was correctly processed.